Data price why?

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Vegeta

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This is a simple thread. Exactly why is 3G/HSDPA bandwidth so much more expensive than ADSL. Lets say a adsl SAIX 1Gig account for R70... why is 3G data so much more expensive? Isn't it all Saix or IS at the end of the day? I'm confused, i'm a confused noob, what in the chain turns everything 360 degrees?
 
Contention ratios? Capital intensive towers?
 
a 3G tower costs between 1,5 and 2 millions rand to build, that must have some effect on the pricing
 
10i said:
a 3G tower costs between 1,5 and 2 millions rand to build, that must have some effect on the pricing
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That sounds right (I think) but remember the primary purpose of the tower is for Voice, data is a secondary revenue stream.
 
Vegeta said:
This is a simple thread. Exactly why is 3G/HSDPA bandwidth so much more expensive than ADSL. Lets say a adsl SAIX 1Gig account for R70... why is 3G data so much more expensive? Isn't it all Saix or IS at the end of the day? I'm confused, i'm a confused noob, what in the chain turns everything 360 degrees?
Click to expand...
I'd be happy with 1GB for R100 pm on Vodacom 3G that way I can surf properly on my phone instead of using Opera mIni. (I will also still keep ADSL)
 
funny how the WUG wifi technology costs almost nothing, at much faster speeds, while the 3G towers cost "millions"

does telkom put up towers? iburst? how about neotel or screamer? or any other wifi isp?


-ok- lets be frank here...
an in-bundle price is say, 17c per meg - why does it have to be R2 per meg out of bundle? that has nothing to do with the tower costs?
 
The towers are already there... for voice... they already cover the whole SA i dont think they still rollout loads of towers. They've recouped the costs by now. I just dont get it.
 
Vegeta said:
This is a simple thread. Exactly why is 3G/HSDPA bandwidth so much more expensive than ADSL. Lets say a adsl SAIX 1Gig account for R70... why is 3G data so much more expensive? Isn't it all Saix or IS at the end of the day? I'm confused, i'm a confused noob, what in the chain turns everything 360 degrees?
Click to expand...

+1
I would also like to know, cause i don't get it :cool:
 
I am sure that VC is following a marketing strategy that is based on supply and demand.
While they are on an upward growth curve like they have been for years now, and no one to rock the boat, they weild the big stick.
ADSL is now much cheaper from a fixed location, but if it's mobility you want..........
But yes, I agree that R2 per mb OB is criminal and needs to be changed ASAP.
But our voice rates are even more disgusting!!!!!
 
We are getting ripped off

What I cannot understand is how the bundles stop at 19c/meg. 2GB is R389 (19c/mb) and the rest of the higher ones stay the same per meg, why can't the 5GB and 10GB be cheaper per meg???? Almost R2000 for 10GB is crazy.
 
Basilrsa said:
I am sure that VC is following a marketing strategy that is based on supply and demand.
While they are on an upward growth curve like they have been for years now, and no one to rock the boat, they weild the big stick.
ADSL is now much cheaper from a fixed location, but if it's mobility you want..........
But yes, I agree that R2 per mb OB is criminal and needs to be changed ASAP.
But our voice rates are even more disgusting!!!!!
Click to expand...

Mobility, the sad fact of this all is that there are many Vodacom customers that have 3G because Telkom will not install ADSL and Neotel has coverage. Many customers use Vodacom HSDPA as a form of fixed internet at home.
 
Vegeta said:
The towers are already there... for voice... they already cover the whole SA i dont think they still rollout loads of towers. They've recouped the costs by now. I just dont get it.
Click to expand...
The pole might be standing there... but the 3G radios and antennae are not the same ones that are used for voice. In order to enable a tower for 3G the amount of equipment is double... over R1million of equipment added to an existing tower.

Add to that the fact that 3G cells are smaller. Thus more physical towers are needed than are currently used for voice coverage.
 
Keeper said:
funny how the WUG wifi technology costs almost nothing, at much faster speeds, while the 3G towers cost "millions"

does telkom put up towers? iburst? how about neotel or screamer? or any other wifi isp?


-ok- lets be frank here...
an in-bundle price is say, 17c per meg - why does it have to be R2 per meg out of bundle? that has nothing to do with the tower costs?
Click to expand...

Funny how WUG's have no backhaul connections to worry about, employees to pay, advertising costs to cover, SLA's to maintain, after sales service and support to offer. :rolleyes:
 
Vegeta said:
This is a simple thread. Exactly why is 3G/HSDPA bandwidth so much more expensive than ADSL. Lets say a adsl SAIX 1Gig account for R70... why is 3G data so much more expensive? Isn't it all Saix or IS at the end of the day? I'm confused, i'm a confused noob, what in the chain turns everything 360 degrees?
Click to expand...

You are forgetting about line rental and ADSL service costs which need to be bundled into your total ADSL costs. Up to 3GB a month 3G beats ADSL hands down in terms of cost.
 
morkhans said:
You are forgetting about line rental and ADSL service costs which need to be bundled into your total ADSL costs. Up to 3GB a month 3G beats ADSL hands down in terms of cost.
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You're including a$s rape in the price... should we assume that if we want any type of telecoms product we should include a fixed mandatory a$s rape fee to determine the final price?:sick:
 
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morkhans said:
Last I checked a 1GB bundle cost R289. :rolleyes:
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The R2048 per 1GB refers to the out of bundle rate. Why is is so high do you think? Are Vodacom making a loss on their in-bundle rates so they overcharge on the out of bundle rates to subsidise?
 
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